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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011

Authors:
Rameez Ahmed Siddiqi
Sirajuddin Perzada
Muhammad Yawar Yameen

28 Monday 2009
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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Table of Contents

Contents Page #

1. Company overview -----------------------------------------


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2. Bio Amla Shampoo -----------------------------------------
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3. Steps in Repositioning market -----------------------------
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4. POPs and Bio Amla -----------------------------------------
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5. PODs and Bio Amla ----------------------------------------
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6. Market Segmentation ---------------------------------------
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7. 4P’s Analysis -------------------------------------------------
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8. SWOT Analysis ----------------------------------------------
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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Acknowledgment

My First and foremost gratitude to Allah the Almighty for


giving me the valor to remain dedicated to make this first ever
term report.
This underlying report is based REPOSTIONING AND
REVIVAL OF BIO AMLA SHAMPOO with most
knowledgeable help of our dearest Miss Isma Zaigham.
In making this term report we collected the whole data from
publications, internet and various business magazines.

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Company Overview
Company Profile
Bio Amla Hair care products are produced effectively and efficiently
under the supervision of FORVIL COSMETICS Pakistan. Forvil
Cosmetics, Pakistan's leading Manufacturer & Exporter of Herbal
Cosmetics products. They have a vast & ever evolving portfolio
comprised on various Hair Skin Care Products, based on our unique
Herbal formulations. With an exposure & experience of 50 grand years
in the industry, Forvil Cosmetics is a name synonymous with Quality &
Trust amongst its millions of consumers all around the world.

Company History
Forvil Cosmetics was established in Pakistan back in 1960 when
imported products were the only option available in Cosmetics products.
Forvil Cosmetics were the first in this field to fill in the empty existing
in the market. Owing to high standards in formulation & consistent
quality, Forvil's brands did not take long before they were not only
compared with the imported competition, but in many cases, were
preferred over them. Over the period of time, Forvil Cosmetics has kept
on raising the bar from its own set high Quality Standards and today is
the one of most trusted name in the field of Herbal Cosmetics.
Today Forvil is not alone there are many outside competitions to its Hair
Care Range. The only reason it lacks back is despite of all the changes in
this fast moving world forvil has
remained the same.

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Company Goals
Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011

 To make Forvil Cosmetics a leading cosmetic


manufacturing company in Pakistan.
 To meet the International Quality Standards by adapting
International Quality and Environmental Management
Systems.
 To expand our operations worldwide.

Company Focus
 To gain and maintain a market leader’s position in the
cosmetics market through high quality and reliable natural
products.
 To keep pace with demands of a rapidly changing market
through constant research and development & investment
in the training of our human resources.
 To act as a responsible corporate citizen, taking good care
of the environment, & promoting nature as the reliable
source of care & cure.
F IGURE 1: FORVIL COSMETICS L OGO

Company Strengths
 Innovation
 Reliability
 Leadership
 Ownership
 Passion for winning

Company Weaknesses

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 Inferior Human Resource Development

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


 Consumer focus
 Lack of Marketing (Advertisements, Sale Promotions etc)
 Lack of Technology

Market Share
 US$10 Million - US$50 Million  Annual sales

Leading Brands
 Bio Amla - A Herbal Hair Care Product Range
 Bio Nikhaar - A leading Skin Care Brand

BIO AMLA SHAMPOO

Bio Amla Shampoo is the flagship brand of Forvil Cosmetics,


launched back in 1982. It has been the most favorite & trusted
Herbal. This report is all about REPOSTIONING BIO AMLA
BACK IN PAKISTAN.
Bio Amla faces a number of competitors who are or who have
huge brand equity for example PANTENE, SUNSILK etc. Bio
Amla has what it takes to tackle these huge markets Godzilla.
The main problems faced by them are mentioned above. Let’s
look in to the history of BIO AMLA.

Number & Types of Customers

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Bio Amla servers many customers throughout the world and is
Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
looking forward to go international. The customers targeted by
Bio Amla from the beginning are lower-lowers to upper-middle
class which is huge sector of market.

Customers Decision Process


Shampoos are regarded as Fast Moving Consumer Goods
(FMCGs) which means the buyer of Bio Amla shampoos don’t
think a lot while purchasing it. Yet many external; factors help
in the buyers decision process for example any perception in the
mind of
buyer
about the
product,
any
motivation
through

advertisements or any good or bad effect from buyers past


experiences have a Negative or a Positive effect on buyers
decision.

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
STEPS IN REPOSITIONING MARKET FOR
“BIO AMLA SHAMPOO”

Bio Amla shampoo is the first ever herbal shampoo produced by


Pakistan. The level and status of this product was huge when it
first struck the markets of Pakistan, because the relative
competitions in the 1980s were very much invisible. It strode of
with great profits and tons of revenues till the 1990s when
suddenly a huge number of Hair Care products entered the
market. Bio Amla in all these years had not changed one bit, it
did not launch any new product line nor did it change the
outlook of its product and it kept on targeting the same two
segments.
The new competitors kept on growing so reluctantly that bio
amla never had a clue that what hit them. Bio Amla should have
taken immediate actions against these massive firms. Its never
too late to try again. Bio amla has all it needs to cope up with
this situation through these two steps:

 POP (Points of Parity)

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
POD (Points of Difference)

Choosing POPs and PODs:

Points of Parity (POP) are associations that are not necessarily


unique to the brand but may be shared by other brands i.e. where
you can at least match the competitors claimed benefits.
Points of Difference (POD) are Attributes or benefits consumers
strongly associate with a brand, positively evaluate and believe
they could not find to the same extent with a competing brand.
There are three consumer desirability criteria for POD:
 Relevance
 Distinctiveness
 Believability
There are three deliverability criteria for POP:
 Feasibility
 Communicability
 Sustainability

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
POPS & BIO AMLA
 POPs
o Feasibility:
Feasibility refers to changing the created perception
about BIO AMLA that it is just used by people of low
income. Instead it is a herbal shampoo that is proven
to be the best remedy for people with damaged hairs.
This is only possible through the correct
advertisement.
o Communicability:
The changing of perception is possible only when the
marketers remain in regular touch with the users of
BIO AMLA to notify and rectify what they want and
how they want. This is Communicability.
o Sustainability:
After clarifying all the doubts from the customers by
the customers of BIO AMLA comes the step in which
the customers created should remain sustained as to no
one leaves the consumption of BIO AMLA. This is
possible when Bio Amla drops down on all of its

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
commitments. They should show Bio Amla as such a
strong shampoo that will work on all hair types and in
real it should work because if it doesn’t then one by
one customer might slip out of hands of Bio Amla.

PODS & BIO AMLA


 PODs
o Relevance:
Target customers must find the PODs relevant to the
product for example the advertisements containing
BIO AMLA should always be managed delicately and
should deliver the message which the consumer wants
to hear. The advertisement should be all about strong
and beautiful hairs and that it is the perfect herbal
shampoo for everyone male female and kids in the
house.
o Distinctiveness:
The customers must find BIO AMLA distinct and one
of a kind from all other shampoos. That is possible
only when they management point out there biggest
strength that this is a unique pre planned high intake
herbsol solution for hairs. The recent development of a
shampoo named HERBAL ESSENCE in the market is
taking away consumers of Bio Amla but that doesn’t

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means to quit instead they should take it as a new

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


opening and tackle it willingly.
o Believability:
The advertisements and other marketing activities
which involve BIO AMLA must be pin point accurate
and then comes the main part. Whatsoever is being
delivered in these marketing activities must be in real
for example if the add depicts strong hairs and in real
it doesn’t then Bio Amla might loose the trust of its
consumers.

Bio Amla has what it takes to be a leading brand in the nation


but all it needs is support and trust which also should be gained
by Forvil Cosmetics themselves. If we see the PRODUCT
LIFE CYCLE STAGE of Bio Amla it is clear that it exists on
the level between GROWTH & MATURITY. Which means it
should buckle up and start taking things seriously

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011

BIO AMLA
SHAMPOO

MARKET SEGMENTATION FOR BIO AMLA

Segmentation of BIO AMLA is done under many different


ways. Geographic, Demographic, Psychographic, Behavioral
segmentation.

Geographic:
o Country:
Pakistan
o City:

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Karachi, Lahore, Islamabad, Hyderabad and in all

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


the rest main metropolitan countries and small towns.
o Density:
Urban and Sub urban

Demographic:
o Age:
6 years - 65+ years
o Gender:
Male and Female
o Family Life Cycle:
Young, Single; Young, Married, No Children;
Young, Married, Children; Young, Married, Youngest
Children over 6 years; Older, Married, No Children
under 18 years.
o Income:
Above 10,000 Rs

Psychographic:
o Social Class:
Upper Lowers, Working Class, Middle Class, Upper
Middles and Lower Uppers
o Life Style:
Culture Oriented and Outdoor Oriented
o Personality:

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Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Compulsive and Gregarious

Behavioral:
o Benefits:
Quality, Service and Economy
o User Status:
Non User, Ex-user, Potential user and Regular user
o Loyalty Stage:
Medium and Strong
o Usage Rate:
Medium user and Heavy user
o Readiness Stage:
Unaware, aware, informed, interested, desirous,
intending to buy

4 P’S ANALYSIS
Product:
Bio Amla’s main core product is that of a perfect herbal
shampoo. It comes in many different sizes and shapes for
different types of users. This shampoo is the first of its kind

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herbal shampoo, it contains different 24 herbs. Bio Amla has

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


been certified a product through ISO 9001; 2000 and ISO
14000, it also certifies through “American Quality Standards”
when it comes to quality. The shapes and sizes in which Bio
Amla comes are as follows:

Place:
Bio Amla has a distinction of having the largest distribution
network for Shampoo products in Pakistan. The numbers ranges
from 500 distributors covering 250 towns with a direct coverage
of over 100,000 retail outlets.
With an understanding on the nuances of distribution, the
company has developed a unique handling and storage process,
which ensures the minimum damage and expiries. With a
dedicated system and logistics process, it achieves a balance
between sales and production.
The efficiency of the network is governed by the Company's

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Sales Office in Lahore and Liaison Offices in main cities of
Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Pakistan including Karachi, Rawalpindi, Multan, Sukkhur and
Hyderabad. The International Business department is also based
in Lahore to look over the exports ranging to various countries
in Asia, Europe & Africa.

Pricing:

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Bio Amla claims to practice value-based pricing in which the

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


customers “perception of the product” price provides a starting
point for developing the marketing mix of the product. The
research department determines this price usually by using focus
groups. The price of RS 3 for Bio Amla shampoo sachets shows
how the price also reflects a concern to make the purchase more
convenient, since the rupee is detonated in this value.
The primary importance of this value-based pricing is that the
product demand will be much higher if its price is in line with
the customer`s perception of its value. One crucial concern for
value-based pricing is strict management of cost in order to be
able to make a profit at the value-based price. After the initial
price is determined, Bio Amla then uses target costing in order
to achieve the required profits. With the marketing plan now
being termed as “Annual Contract” the importance of meeting
the profit margin requirements has increased. Target costing
thus provides an essential tool to manage cost effectively.
This market consists of many buyers and sellers trading over a
range of prices. The key element is differentiation, which allows
the seller to gain market share in contrast to competitors. Given
this market condition, Bio Amla differentiates its products and
also sells them in different price ranges to cover at least a large
portion of the market. Also this makes Bio Amla more sensitive
to price changes of competitor’s products.

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Positioning:
Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
Bio amla works on small bases but has a huge stamina to tackle
its competitors through PROMOTIONAL ACTIVITES. The
main core Advertising Objectives of Bio Amla are:
 To increase the usage
 Makes the hair appear clean and shiny
 Imparts a feeling of freshness due to fragrance
 Easy to manage silky and soft hairs
 Unique shampoo for every hair type
 Effectively communicate brand promise
Advertisement Objectives:
The advertisement of Bio Amla follows the smile approach that
is:
S - Simple
M - Memorable
I - Interesting with relative information
L - Linked to Brand
E – Emotionally involved and liked

A product’s particular advertising strategy also depends on the


level of competition involved with each product. For example
when Pantene and Sunsilk entered the shampoo market they
promoted the shampoo’s functional benefits, which greatly
appealed the consumers. Bio Amla seeing this trend changed its

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advertising strategy so that their advertisements also promoted

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


the shampoo’s functional benefits.

SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate


the Strengths, Weaknesses, Opportunities, and Threats involved
in a project or in a business venture. It involves specifying the
objective of the business venture or project and identifying the
internal and external factors that are favorable and unfavorable
to achieving that objective.
This analysis will clarify that how well Bio Amla drops down in
Pakistan.

Strengths
 Forvil Cosmetic’s Bio Amla is one of the largest
organizations of Pakistan
 Company has advanced technology and well skilled
professionals
 The new Bio Amla is a high quality product in terms of hair
protection.
 The target market is educated, and belongs to middle to
upper class.
 Company’s totally owned, systematic distribution network,
transparent communication system.
 Participative management style.

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 Very good distribution network all over Pakistan in all
Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011
major and small cities.

Weaknesses
 Competitor has string promotional activities.
 Imported brands are also available in market.
 Customers are offered better alternatives by the
competition.
 Lack of knowledge of the product in the mind consumers.
 Considered as the “Shampoo for the Poor’s”.
 No creativity.
 Less financial support.

Opportunities
 Population expanding at a rapid rate.
 Consumers are becoming savvier.
 Current capacity utilization is 60%, which can be further
broadened with the increase in demand.
 Customer base is increasing with effective marketing.
 Baby shampoo is another area where Bio Amla can make
huge gains.

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 Shampoo plus conditioner is another area where Bio Amla

Marketing Plan for Revival & Repositioning of BIO-AMLA | 2/6/2011


can earn huge profits.

Threats
 Political and economical factors.
 Partial Government policies.
 High rate of competition.
 Local and Foreign competition.
 Smuggling via Afghan Trade Transit is one of the biggest
hurdles faced by Bio Amla.
 Supplies form Indonesia and Thailand is another important
issue.

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